Stratasys, Inc. Announces Record 3rd Quarter Revenues & Earnings
26 October 1999
Stratasys, Inc. Announces Record 3rd Quarter Revenues & Earnings; Revenues Up 32% Over Third Quarter 1998; Income of $0.17 Exceeds Estimates
MINNEAPOLIS--October 25, 1999 - Stratasys, Inc. today announced record revenues and profits for the third quarter and nine months ended September 30, 1999.Revenues for the third quarter rose to a record $10,359,357, compared to $7,836,247 in the third quarter of 1998, a 32 percent increase. Net income for the third quarter of 1999 was $964,587, or $0.17 per share, compared to income of $49,618, or $0.01 per share, for the same period in 1998. Gross profit margin as a percentage of sales grew to 68 percent for the third quarter of 1999, compared to 62 percent for the third quarter of 1998.
For the nine months ended September 30, 1999, revenues totaled $26,826,896, compared to revenues of $23,100,729 for the nine months ended September 30, 1998, a 16 percent increase. The Company reported net income for the nine months of $984,502, or $0.17 per share, compared to net income of $496,127, or $0.08 per share for the same period of 1998.
Scott Crump, Chairman and Chief Executive Officer, stated, "We are delighted to report record revenues and income for the third quarter that exceeded all analysts estimates. These results represent a substantial effort on the part of Management to bring to the bottom line an EPS that our shareholders can be proud of.
Mr. Crump continued, "Two of the primary reasons for our very strong third quarter were continued expansion into the automobile industry by our Quantum System sales and the highly successful introduction of our new FDM3000 Benchtop Rapid Prototyping System. The system allows users to prototype their new products in real ABS Plastic material, then automatically wash away the fixture supports. This process significantly improves model surface quality, and reduces labor costs and model completion time, making it easier to use. This represents a major technological breakthrough in the Rapid Prototyping industry."
Mr. Crump concluded, "1999 is shaping up to be one of our most successful years and, we believe, we are well positioned to enter the millennium with continued strong growth and a momentum unparalleled in our history."
Stratasys, Inc., founded in 1989, is a manufacturer of rapid prototyping systems for automotive, aerospace, industrial, medical, recreation, electronic and consumer products OEMs. The Company's patented Fused Deposition Modeling process creates three-dimensional ABS, wax, elastomer or polyester compound models directly from all 3D CAD files.
The Company is located at 14950 Martin Drive, Eden Prairie, Minnesota 55344-2020. For further information on the Company and its products please contact Stratasys, Inc. by phone (612/937-3000) or fax (612/937-0070) or visit the Stratasys website at www.stratasys.com.
(Tables to follow)
Except for the historical information herein the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the timely development and acceptance of new products, the impact of competitive products and pricing, and the other risks detailed from time to time in the Company's SEC Reports, including the report on Form 10-KSB for the year ended December 31,1998, and on Form 10-Q for the quarters ended March 31, and June 30, 1999.
This release and prior releases are available on the Stratasys website at www.stratasys.com and the KCSA website at www.kcsa.com.
STRATASYS, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
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Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
(unaudited) (unaudited) (unaudited) (unaudited)
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Sales $ 10,359,357 $ 7,836,247 $ 26,826,896 $ 23,100,729
Cost of
goods sold 3,311,250 2,948,307 8,953,954 7,859,872
-------------------------- ----------------------------
Gross profit 7,048,107 4,887,940 17,872,942 15,240,857)
Costs and
expenses
Research and
development 1,829,828 1,470,715 5,101,771 4,053,744
Selling,
general and
administrative 3,826,847 3,507,876 11,558,743 10,873,596
-------------------------- ----------------------------
5,656,675 4,978,591 16,660,514 14,927,340
-------------------------- ----------------------------
Operating
income (loss) 1,391,432 (90,651) 1,212,428 313,517
-------------------------- ----------------------------
Other income
(expense)
Interest
income 125,409 175,857 380,941 483,725
Interest
expense (32,862) (8,874) (78,750) (33,973)
-------------------------- ----------------------------
92,547 166,983 302,191 449,752
-------------------------- ----------------------------
Income before
income taxes 1,483,979 76,332 1,514,619 763,269
Income taxes 519,392 26,714 530,117 267,142
-------------------------- ----------------------------
Net income $ 964,587 $ 49,618 $ 984,502 $ 496,127
Earnings per
common share
Basic $ 0.17 $ 0.01 $ 0.17 $ 0.08
-------------------------- ----------------------------
Diluted $ 0.17 $ 0.01 $ 0.17 $ 0.08
-------------------------- ----------------------------
Weighted
average number
of common
shares
outstanding
Basic 5,658,739 6,059,269 5,847,083 6,074,416
-------------------------- ----------------------------
Diluted 5,660,680 6,109,275 5,849,609 6,191,682
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Item 1. Financial Statements
STRATASYS, INC.
CONSOLIDATED BALANCE SHEETS
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September 30, December 31,
1999 1998
(unaudited) (audited)
----------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $ 8,572,792 $ 11,243,839
Marketable Securities 20,152 4,593,910
Accounts receivable, less
allowance for doubtful
accounts of $485,445 in 1999
and $395,291 in 1998 10,451,907 9,838,836
Inventories 6,129,019 5,035,588
Prepaid expenses 698,459 593,363
Deferred income taxes 243,000 243,000
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Total current assets 26,115,329 31,548,536
------------------------------------
Machinery and Equipment, less
accumulated depreciation 3,464,539 3,601,829
------------------------------------
Other assets
Intangible assets 3,131,523 2,788,769
Deferred income taxes 2,541,883 3,072,000
Other 129,664 179,042
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5,803,070 6,039,811
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$ 35,382,938 $ 41,190,176
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Obligations under capitalized
leases, current portion 132,008 177,669
Purchased in-process research
and development payable 6,464,709
Accounts payable and other
current liabilities 3,955,942 3,601,570
Unearned maintenance revenue 3,577,966 2,649,824
------------------------------------
Total current liabilities 7,665,916 12,893,772
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Obligations under capitalized
leases, less current portion 93,680 193,327
------------------------------------
93,680 193,327
------------------------------------
Stockholders' Equity
Common Stock, $.01 par value,
authorized 15,000,000 shares,
issued 6,101,961 shares in 1999
and 6,100,524 shares in 1998 61,020 61,005
Capital in excess of par value 32,712,755 32,710,484
Accumulated deficit (2,863,027) (3,847,529)
Accumulated other
comprehensive income (loss) (30,572) (38,956)
Less cost of treasury stock,
545,200 shares in1999
and 137,300 shares in 1998 (2,256,834) (781,927)
------------------------------------
Total Stockholders' Equity 27,623,342 28,103,077
------------------------------------
$ 35,382,938 $ 41,190,176
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